Join the Debate: How Much to Spend on Social Media Marketing?

Posted by Shirley Brady on May 12, 2010 03:23 PM

Here are more reader responses to Brandchannel's social media debate series, this one on how much to spend on social media. We originally asked about money, but what about time? Tell us what you think by posting a comment, and follow our social media debate series by clicking here. And don't miss the comments on the "That's Debatable" social media series on Interbrand.com.

How much of your marketing spend to devote to social media?

"The key insight into social media is that its not just another channel. It has changed behaviour. So to be successful at your marketing you need to understand your brand in a different world. How much should you spend? Far less because it's far cheaper, but far more important." Walter Pike, PiKE | New Marketing

"Once you have opened a line of communication, the audience will expect you to follow-up closely. This demands not only time, also good knowledge in the media type, the specific brand and the company that you are working at. Social media can be an arena to build brand knowledge and awareness, but maybe it's not the most efficient channel to boost your sales? And will social media have a long term effect on your brand?" Merete W. Haugaa, Marketing Manager, Hennig-Olsen Is A/S

"I think it depends...on where you will find your target audience, your ability to educate yourself and focus time on social media, as well as the resources available.That's why it's important for any brand to do their research." Carol Chapman, Principal, The Brand Ascension Group

"It depends on what your marketing objectives are. Essentially Social Media is just another medium, albeit with a specialty. It has more benefit as a long term branding platform and if marketers do nothing else, they should try and start implementing activities to achieve this. And, ofcourse, the budget should match accordingly." Muhammad Karim, Senior Brand Manager, Mars Chocolate UK

"We often run an exercise with our clients looking at the budget split between all media channels. Those who said last year they would spend less than 25 on social media have seen the ROI and this year are spending more than 50." Alex Sass, Head of digital, Renegade Media

View more reader responses

More about: Social Media, Debate, ROI, Facebook, Twitter, Foursquare, MySpace, blogs

Handoko Said says:

I agree with some of the experts' opinion that social media is a suitable tool to build brand awareness, but probably a less-effective tool for sales.

One thing that companies need to be careful when dealing with social media is it will get personal.
When complains don't get answered, the customer will feel it personally and might react in a more dramatic fashion compare to the regular channel.

And while i see the benefit of social media in building positive message to the public, social media can as easily be a very fast way of broadcasting negative customer experience, fueled by personal dissatisfaction.

In the end, i think one company will be benefited by social media from the other, depending on the industry and public segment it wants to attract.
So one way to start is by putting your loyal customer as the face-person, with your company plays only as fan-base supporter, much like how celebrities deals with their fan-base.

May 14, 2010 04:12 AM #